Business registration is the first step towards starting a business. It helps establish a legally recognised business identity.
Having a legally registered business enables entrepreneurs to obtain licences, permits, and access business facilities such as business loans, grants, incentives, subsidies, and other relevant business support.
Choosing the appropriate business entity depends on several factors, including the number of owners, business scale, capital requirements, owners' liabilities, and future business expansion plans.
Types of Business Entities
- Sole Proprietorship
A business wholly owned by a single individual under the Registration of Businesses Act 1956.
Suitable for entrepreneurs starting a small-scale business or managing a business independently.
General Requirements:
- Malaysian citizen or permanent resident
- At least 18 years old
A business can be registered using:
- Personal Name: The name as stated on the owner's identity card; or
- Trade Name: A chosen business name that requires approval from the Companies Commission of Malaysia (SSM)
- Partnership
A business owned by at least two individuals, with a maximum of 20 partners.
- Limited Liability Partnership (LLP)
Combines the characteristics of a conventional partnership with certain features of a company.